Applicant numbers soar 21% as buyer demand remains robust

Monday, July 28, 2014

An upbeat report from Sequence this morning says that buyer registrations have soared 21% annually across the UK.

Pouring cold water on recent reports, including last Friday’s Hometrack survey, that demand is cooling significantly, Sequence chief executive David Plumtree acknowledged an ongoing mismatch between supply and demand, but said: “Demand for properties across the UK remains robust.”

The only place where buyer demand has dipped is London. Plumtree said that in June it fell 14% on a monthly basis.

While new instructions remain thin on the ground – up just 2% annually – sales are up 10% on a year ago.

Sequence put the average house price, excluding London, at £175,728, and at £457,833 in the capital.

Plumtree said: “It is still a seller’s market across the UK, with house prices rising on the month and up 8% annually.

“There is still a great deal of activity in the market, with the number of viewings and offers up annually by 7% and 17% respectively. This activity is translating into sales.

“The UK’s mortgage market has recovered from the initial dip in applications caused by MMR, with applications up 13% on the month. Though this figure is still 5% below last year, the appetite to buy across the UK remains very strong.”

Separately, Halifax this morning reported strong optimism among consumers on the house-selling front. It said 57% of people think it will be a good time to sell in the next 12 months, compared with 32% who think it will be a bad time.

However, the number of people who think it will be a good time to buy has fallen over the last three months, since the Halifax last did its quarterly confidence survey.

But is it really such a good thing when people are so convinced it’s a seller’s market?

Here’s the salutary tale of a young couple who were “ghost gazumped” twice. No doubt it’s the agents who get the blame – but is this a case of vendors being greedy or hard-headed?